International Trade Lesson Plan

  1. Topic: International Trade, Economic Development & Globalization
  1. Objective: is to help the students understand the costs and benefits of international trade by viewing the issue from a domestic and

international perspective. The students will gain a better understanding of the global economic environment by reading the chapters

pertaining to international economics. The following topics should be covered in the class discussion or lecture: international trade,

balance of payments, exchange rates & trade deficits and economic development. The students will do a 2 page APA

format paper of the concept by applying the material in the videos to the chapter reading material.

  1. Discuss gains from trade and how it pertains to international trade and the pattern of trade we see in the world. Discuss

outsourcing and its relationship to cost differentials across nations for the factors of production. Have the students write a 2 page

APA format paper outlining the pros and cons of outsourcing by view the following videos:

  • Make sure the students answer the following questions about outsourcing and economic development in the 1-2 page paper or outline on international trade and outsourcing:
  • What is outsourcing?
  • What is fueling outsourcing from a global perspective?
  • Is outsourcing good or bad for from a domestic and global perspective?
  • How do some countries try to deal with outsourcing—discuss protective employment policies of some European countries?
  1. Discuss globalization and its impact on the global economy by having the students do a 2 page APA paper on the globalization videos. Have the students view the following videos and apply the at least 2 of the economic concepts in the videos to a current real world globalization issue pertaining to a country in the world.
  1. Make sure the students answer the following questions in their globalization paper:
  • What is the difference between globalization and the global economy?
  • What impact has globalization had on the global economy in terms of economic development and job creation?
  • What impact has globalization had on environment in some countries?
  • What impact has globalization had on the culture of many developing and developed countries?
  • Do you think globalization is good or bad and why?

Quiz Suggestion: It would be helpful to have the students complete a 10 question true/false or multiple choice quizzes pertaining to the 3 chapters used for this assignment section. The quizzes should come from the chapter on international trade, economic development and balance of payment chapters. After the students have completed the quizzes and completed the in class or written assignments along with the in class lecture discussions, the students should be ready to take the section exam. The professor should thoroughly cover the 3 international chapters along with the assign- ments in the lesson outline. The material covered in this lesson plan can be used to help the students obtain a better understanding of the economic topics.

The professor has discretion with the questions they want to use on the quizzes. The primary goal is to make sure that the 10 question quiz comesfrom the chapter readings and encourages the students to read the textbook so that the students will have a better understanding of the in class discussion and written exercises pertaining to the videos used to reinforce the concepts. I would recommend that the students take the chapter quizzesprior to doing the video written assignments and in class discussion assignments. This methodology will provide the professor with the flexibility toincorporate the economic concepts into the last section exam on international trade if they chose to do so. Portions of this lesson plan may also be used if a professor only wants to cover some of the topics. The section exam will cover these concepts if the exam covers international trade and economic development or developing countries. Any macro- economic textbook section on international trade will complement this material.

Sample Quizzes: The following are short sample quizzes students can be given after they have read the chapters on international trade, economic development and have viewed the videos pertaining to the quiz topic. These quizzes can be given out in class or online in Blackboard. The studentsshould be given 20 minutes per quiz.

True/False Quiz on Economic Development & Less Developed Countries

  1. Answer: False

A country with a high GDP per capita can be classified as an industrially advanced country (IAC) regardless of its industrial development.

  1. Answer: True

A country with a high GDP per capita is classified as an industrially advanced country (IAC).

  1. Answer: True

In general, GDP per capita is highly correlated with alternative measures of quality of life.

  1. Answer : False

A country cannot develop without a large natural resource base.

  1. Answer: True,

Political instability is a deterrent to long-term private investment.

  1. Answer: True

The vicious circle of poverty is the trap in which the LDC is too poor to save and therefore it cannot invest and remains poor.

  1. Answer: True

Receipt of foreign aid permits less-developed countries to move to a point outside their production possibilities curve

  1. Answer: False

The World Bank is the agency of the U.S. State Department that is in charge of U.S. loans to foreign countries

  1. Answer: False

The main purpose of the International Monetary Fund is to manage and distribute U.S. foreign aid.

  1. Answer: True

If population grows faster than GDP, then per capita GDP must fall

True/False Quiz on International Trade

  1. Answer: False

If free trade is opened between two countries, then one country must gain at the other country's expense.

  1. Answer: True

A country has a comparative advantage in producing a good when it has the lowest opportunity cost of producing that good.

  1. Answer: True

It is possible for a nation to have an absolute advantage in the production of a product, but not a comparative advantage in the production of the same product

  1. Answer: False

Protectionist policies such as tariffs and quotas are beneficial to the nation imposing those trade barriers.

  1. Answer: True

According to the infant industry argument, a new domestic industry needs protection because it has higher costs than established foreign competitors.

  1. Answer: False

An increase in a nation's trade deficit occurs when that nation's exports rise and/or its imports fall.

  1. Answer: True

A tariff will decrease the supply of the product.

  1. Answer: False

Absolute advantage governs the potential for gains from trade

  1. Answer: False

A country should export the goods in which it has an absolute advantage.

  1. Answer: True

International specialization and trade according to the principle of comparative advantage is mutually beneficial for all economies involved.

Bonnie Oliver, Valencia College, (2014), Principles of Macroeconomics